Article Type

Research Article


Non-financial services, such as consultations in research and development, finance, economics, accounting, law, and others (Eurostat, 2020) are offered to companies. Providing non-financial along with financial services at microfinance institutions has been a very controversial topic over the last decade. In fact, many scholars have highlighted the advantages of non-financial services not only for customers but also for microfinance institutions, whilst others have pinpointed the massive operational expenses that come with those services and identified the negative impact of those services on micro-finance institutions’ financial performance. Therefore, this paper aims at studying the effect that non-financial services really have on Lebanese microfinance institutions’ financial performance through analyzing the following independent variables: financial sustainability, donors’ contributions, loans’ quality, and operational expenses. A quantitative method was conducted via the distribution of a questionnaire to several Lebanese microfinance institutions, and statistical results were established and assessed. The findings helped us draw a conclusion regarding the provision of non-financial services at Lebanese microfinance institutions, and recommendations were presented accordingly. Finally, this study is significant because it sheds light on the Lebanese microfinance institutions and offers a deeper understanding of the factors that enhance the effect that non-financial services have on microfinance institutions’ financial performance.


Non-financial services, microfinance institutions, financial performance, loan quality, operational expenses, financial sustainability.